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 Posted: Wed Jan 09, 2008 3:21 pm Subject: Should I request a DV letter even though I know the debt is |
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Should I request a debt validation letter even though I know the debt is valid and was just turned over to a collections agency? I know if the debt is old etc, this is a wise thing, but I know this debt was just turned over to a collection agency and it's mine. I just got the letter today so now sure how I should handle this.
So all you seasoned pro's out there - what do you suggest?
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jb2007
Joined: 01 May 2007
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| Posted: Wed Jan 09, 2008 3:29 pm Subject: |
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Does the amount look right to you? Many times the CA's will try to tack on additonal fees and inflated interest.
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volleyballmom
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| Posted: Wed Jan 09, 2008 3:29 pm Subject: |
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If the debt is yours, and you know its valid, my suggestion would be to make arrangements to pay it.
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kashzan
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| Posted: Wed Jan 09, 2008 3:40 pm Subject: |
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Yes I think the amount looks right, they add alot of interest before it even got turned over. And I have settled two of my debts already but can't do anything with this one until I save up some more $. I didn't think I needed to send a DV letter but just wanted to see what everyone thought.
Tks
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jb2007
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| Posted: Wed Jan 09, 2008 5:51 pm Subject: |
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If you know it is yours, sending a DV will pretty much just buy you some time. But it doesn't hurt to send it anyway; if they don't validate it then they can't try to collect until they do.
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DebtCruncher
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| Posted: Thu Jan 10, 2008 11:43 pm Subject: Just Because a Collector Says You Owe a Debt Means Nothing |
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An advertisement from debt collection attorneys of Edelman, Combs, Latturner & Goodwin, LLC,
"Even if you know the debt is valid, you have the right to know that the debt buyer actually owns the debt. The debt buyer must be prepared to provide you with a copy of an assignment of the debt that specifically refers to the debtor by name, address, and account number. Also, beware: making even a small payment may revive the statute of limitations on an old debt which would otherwise be uncollectible".
| Quote: | Just Because a Debt Collector Says You Owe a Debt Means Nothing!
Understanding that first and foremost is important. So many people are fearful of the conflict of a debt collector that they simply pay to get rid of them without even verifying if the debt is valid.
Under that great little law, The Fair Debt Collections Practices Act are all the rules for debt collectors to follow. One of your many rights is that you have the right to dispute the validity of a debt. This can mean anything from interest being charged, fees and penalties and original balance. If a debt has been sold and resold how are you to be sure that you owe anything? You ask. Simple as that. The first time you get a notice from a debt collector or a phone call, advise them that you want the debt validated. You have an absolute right to do so. If you have ever looked, you will even see on the actual notice from the collection agency, the following mini Miranda:
"This is an attempt to collect a debt. Any information will be used for that purpose. If you dispute the validity of this debt you have 30 days to notify us of such"
If you do not answer, the debt collector and the coutrs will assume the debt to be valid and it is possible for them to get a default judgment. To prevent third party debt collectors from collecting you MUST answer every communication from a debt collector properly and they cannot collect! For more information see: http://www.educationcenter2000.com/debt_collectors/dealing_with_debt_c ollection.htm |
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lawexpert
Joined: 08 Jan 2008
Posts: 5
Debtcc Points: 163
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| Posted: Fri Jan 11, 2008 8:12 am Subject: |
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If you know it's yours and you know it's valid then sending a DV letter is pretty much a stall tactic that will save you maybe 30 days or so until they start calling you.
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FYI
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Joined: 18 May 2006
Posts: 1731
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| Posted: Fri Jan 11, 2008 9:11 am Subject: Stop the calling |
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| Quote: | 1. You can stop them from calling with a cease and desist letter. By law they must stop calling or you can sue them for $1,000 each time they call after they receive the letter
2. Third party debt collectors are collection debt illegally. The start by pretexting your credit reports which is illegal. As far as DV is concerned, if the debt collector letters are answered properly and the Attorney General in you state and you report illegal debt collection practices to the FTC the debt collector cannot collect one penny.
If you don't know your right you don't know your options!
Just Because a Debt Collector Says You Owe a Debt Means Nothing!
Understanding that first and foremost is important. So many people are fearful of the conflict of a debt collector that they simply pay to get rid of them without even verifying if the debt is valid.
Under that great little law, The Fair Debt Collections Practices Act are all the rules for debt collectors to follow. One of your many rights is that you have the right to dispute the validity of a debt. This can mean anything from interest being charged, fees and penalties and original balance. If a debt has been sold and resold how are you to be sure that you owe anything? You ask. Simple as that. The first time you get a notice from a debt collector or a phone call, advise them that you want the debt validated. You have an absolute right to do so. If you have ever looked, you will even see on the actual notice from the collection agency, the following mini Miranda:
"This is an attempt to collect a debt. Any information will be used for that purpose. If you dispute the validity of this debt you have 30 days to notify us of such"
If you do not answer, the debt collector and the courts will assume the debt to be valid and it is possible for them to get a default judgment. To prevent third party debt collectors from collecting you MUST answer every communication from a debt collector properly and they cannot collect! For more information see: http://www.educationcenter2000.com/debt_collectors/dealing_with_debt_c ollection.htm
If a debt collector is illegally harassing you, file a complaint online at www.ftc.gov/ftc/consumer.htm or by calling, toll-free, 877-FTC-HELP (877-382-4357). |
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lawexpert
Joined: 08 Jan 2008
Posts: 5
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| Posted: Fri Jan 11, 2008 11:42 am Subject: |
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I don't understand why you are saying that 3rd party collection agencies are collecting debts illegally especially if it is a valid debt. Also, pulling a credit report is only illegal on certain debts. Debts can stay on your credit report for as long as your state law allows.
Or many I misunderstood.
The only way they can get a default judgement is if you fail to answer your summons or fail to show up for court. Also, the type of debts you are talking about, the ones being resold constantly, are usually out of the SOL which no judgement can be gained from that anyway provided that you answer your summons stating that the debt is out of the SoL and that the collection agency needs to prove that it is within the SoL.
Also, while you do have the right to dispute a debt, even if it is valid, doesn't mean that after a dispute is resolve that you still won't owe any late fee's or interest stated in the origional contract if it is found in favor of the debt and not the consumer.
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FYI
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| Posted: Fri Jan 11, 2008 12:53 pm Subject: You no longer owe the debt |
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You no longer owe the debt once the debt is "charged off" What that means is that the original creditor recieved a business tax deduction from the IRS for a non-paying account.
The alleged debtor owes nothing.
Therefore the third party debt collector does not have a signed note or a contract that he gave you credit does he? Basic contract law says that if you "have no note you cannot collect".
They cannot validate the debt.
If you don't know your rights you don't know your options.
I cannot train you in this forum how to stop illegal debt collection. I am a consultant for attorneys all over the country and we are winning are cases against third party debt collectors. I realize that you are defending your business of debt consolidation by asking all these questions.
I want consumers to know that third party debt collection is illegal and a scam and that the original creditor only gets pennies on the dollar if anything. And that the debt collector keeps all the money collected. Do you think that's fair? Do you agree that something is wrong with this picture? Especially when they break the law illegally looking into your credit file without your permission.
I have many credit consumers coming to me saying "I have paid a debt consolidation company monthly fees for years and my bank account has just been swept and I find out that I have a default judgment against me for that credit card. "What happened!"
What happens in most cases is that the debt consolidation company told them "don't worry about the summons" we are taking care of it.
Do you think that's fair?
Well, it tells me that the debt consolidation company doesn't know how to stop third party debt collectors from illegal debt collection.
Do your own research and know your rights. There consumer protection laws in place to protect you from third party debt collectors.
See: http://www.budhibbs.com/
An advertisement from debt collection attorneys of Edelman, Combs, Latturner & Goodwin, LLC,
"Even if you know the debt is valid, you have the right to know that the debt buyer actually owns the debt. The debt buyer must be prepared to provide you with a copy of an assignment of the debt that specifically refers to the debtor by name, address, and account number. Also, beware: making even a small payment may revive the statute of limitations on an old debt which would otherwise be uncollectible".
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lawexpert
Joined: 08 Jan 2008
Posts: 5
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| Posted: Fri Jan 11, 2008 1:32 pm Subject: |
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Actually debts are assets which are transferable. If a CA is merely collecting on the debt while the original creditor maintains ownership then there will be an assignment contract giving them the right to collect on it. However the creditor can choose to sell the debt after charge off. How they "write it off" at the end of the fiscal year is they claim it as a loss as if they had paid that amount to you (as if you were an employee but it's a different type of filing) but they may still transfer/sell these assets to another entity as long as they have validation documents to back it up and they have the correct licensing requirements to collect in the state in question (business license, surety bond, and have a registered agent) then they may collect on the debt.
I had these questions long ago myself and contacted the IRS in regards to the filing process and it was confirmed.
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JCEMT
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| Posted: Fri Jan 11, 2008 1:48 pm Subject: |
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A charged off debt isn't the same thing as a written off debt and you are describing a written off debt. Charged Off basically means R9 or Bad Debt. You still owe it.
I do agree that if you are unsure of a debt that it should be validated. You only want to have to pay it once. But when it's validated you should pay it, or if it is validated and out of the SoL you should pay it when you can in one lump sum.
Debt do not just go away because they are no longer with the creditor.
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FYI
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cajunbulldog
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| Posted: Fri Jan 11, 2008 6:42 pm Subject: |
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FYI, what you said about paying in lump sum for time barred debt. It's a good idea, that's why I'm saving them for last  I know I can take care of my recent debts first and the older ones won't hit my credit nor can they be sued upon. They'll get paid off, just at a later time.
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JCEMT
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| Posted: Fri Jan 11, 2008 6:49 pm Subject: |
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Lawexpert, I believe you are wrong on a few of your points. I don't have much time to write now, but I will be back with my rebuttal later.
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DebtCruncher
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| Posted: Fri Jan 11, 2008 6:58 pm Subject: |
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Every negative report I have on my CBR is out of the SoL. I guess why it took me so long to get many of them taken care of was because I knew I needed to take care of them at once instead of dragging it out.
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FYI
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I would love to see these defenses when you go to court.You would be buried under the weight of the evidence. Please do realize this site does not advise anyone to follow incorrect advice.
